Income Taxes (Tables)

12 Months Ended

Dec. 31, 2025

Schedule of Loss from Continuing Operations Before Incomes Taxes

Loss from continuing operations before incomes taxes for the United States and non-U.S. jurisdictions for the years ended December 31, 2025 and 2024 are as follows (in thousands):


	Years Ended December 31,
	2025		2024
Loss from continuing operations before income taxes:
United States	(52,893)		(26,638)
Non-U.S.	(6,776)		(167,780)
Total	$	(59,669)	$	(194,418)

Schedule of Components of Income Tax Provision (Benefit)

The components of income tax (benefit) provision applicable to federal, state and foreign income taxes for the years ended December 31, 2025 and 2024 are as follows (in thousands):


	Years Ended December 31,
	2025		2024
Federal income tax expense (benefit):
Current	251		295
Deferred	(358)		2,500
Total	$	(107)	$	2,795

State income tax expense (benefit):
Current	(65)		75
Deferred	—		—
Total	$	(65)	$	75

Foreign income tax expense (benefit):
Current	4,491		(15,913)
Deferred	(232)		1,737
Total	$	4,259	$	(14,176)

Total income tax expense (benefit):
Current	4,677		(15,543)
Deferred	(590)		4,237
Total	$	4,087	$	(11,306)

Schedule of Effective Income Tax Rate Reconciliation

The differences between the statutory U.S. federal income tax rate and the effective income tax rate for the years ended December 31, 2025 and 2024 are as follows (in thousands):


	Years Ended December 31,
	2025				2024
	Amount		Percent		Amount		Percent
U.S. federal statutory tax rate	$	(12,531)	21.0	%	$	(40,828)	21.0	%
State and local income taxes, net of federal income tax effect (a)	26		—		60		—
Foreign tax effects
Canada
Statutory tax rate difference between Canada and United States	14		—		61		—
Withholding taxes	376		(0.6)		—		—

Puerto Rico
Statutory tax rate difference between Puerto Rico and United States	(1,230)		2.1		(28,352)		14.6
Changes in valuation allowances	2,748		(4.7)		65,638		(33.8)
Interest and penalties	3,722		(6.3)		3,201		(1.7)
Withholding taxes	—		—		(19,899)		10.2
Effect of changes in tax laws or rates enacted in the current period
Effect of cross-border tax laws
Foreign branch inclusions	(1,885)		3.2		(35,996)		18.5
Tax credits
Foreign tax credits	—		—		(166)		0.1
Changes in valuation allowances	12,484		(20.9)		43,703		(22.5)
Nontaxable or nondeductible items

Other	113		(0.2)		981		(0.5)

Other adjustments	250		(0.4)		291		(0.1)
Effective tax rate	$	4,087	(6.8)	%	$	(11,306)	5.8	%

(a) State taxes in Kentucky and West Virginia made up the majority (greater than 50 percent) of the tax effect in this category.

Schedule of Deferred Tax Assets and Liabilities

The tax effect of temporary differences and tax attributes representing deferred tax assets and liabilities at December 31, 2025 and 2024 attributable to the Company consisted of the following (in thousands):


	Year Ended December 31,
	2025		2024
Deferred tax assets:
Allowance for doubtful accounts	$	94	$	167
Section 163(j) interest limitation	1,075		5,090
Lease asset	626		3,660
Intangible assets	810		1,050
Accrued liabilities	2,211		3,605
Net operating loss carryover	120,277		114,506
Foreign tax credits	76,570		76,570
Accumulated other comprehensive income	970		1,068
Other	296		207
Valuation allowance	(188,361)		(187,087)
Deferred tax assets	14,568		18,836

Deferred tax liabilities:
Property, plant and equipment	$	(14,571)	$	(14,140)
Lease liability	(830)		(3,583)

Other	(1,597)		(4,134)
Deferred tax liabilities	(16,998)		(21,857)
Net deferred tax (liability) asset	$	(2,430)	$	(3,021)

Reflected in accompanying balance sheet as:
Deferred income tax asset	$	—	$	—
Deferred income tax liability	(2,430)		(3,021)
Total	$	(2,430)	$	(3,021)

Schedule of Income Taxes Paid, Net of Refunds Received, Disaggregated by Jurisdiction

The income taxes paid, net of refunds received, disaggregated by jurisdiction for the years ended December 31, 2025 and 2024 are as follows (in thousands):


	Years Ended December 31,
	2025		2024
U.S. federal	$	—	$	—

U.S. state and local
Texas	—		58
Other jurisdictions	32		43

Foreign
Canada	785		1,001
Income taxes paid	$	817	$	1,102

MAMMOTH ENERGY SERVICES, INC. 10-K